Property price drops: In which areas can you find a better deal?

The coronavirus pandemic and ensuing restrictions have sent shockwaves throughout the economy, and while the property market has proven to be remarkably resilient so far, it hasn’t been completely spared.
According to data from CoreLogic, prices have been edging downwards since Australia entered lockdown back in March, and it's been properties at the higher end of the market that have seen the steepest declines.
In Melbourne, dwellings in the highest value segment (those worth $959,500 or more) dropped by 1.3% in May, with the middle of the market falling 0.6% and the lowest value segment falling 0.3%.
In the same month, Sydney property prices in the top quartile (those worth over $1.35 million) decreased by 0.6% while the middle of the market dropped 0.4%. The lower end saw a slight increase of 0.1%.
According to CoreLogic head of research Eliza Owen, this is typical of the Sydney and Melbourne markets, as more expensive areas are prone to greater fluctuations in response to market changes.
“However, as the wider economic downturn drags on housing demand, mild price declines are likely to spread, resulting in a more broad-based downturn in the next 12 months,” she said.
Which areas have been most impacted?
City | Area | Change |
---|---|---|
Perth | Mandurah | -2.2% |
Melbourne | Inner South | -2.2% |
Melbourne | Inner | -1.8% |
Melbourne | Inner East | -1.8% |
Perth | South East | -1.2% |
Melbourne | Outer East | -1.2% |
Brisbane | Ipswich | -0.8% |
Sydney | North Sydney and Hornsby | -0.7% |
Sydney | Inner West | -0.7% |
Sydney | Northern Beaches | -0.7% |
Melbourne | North East | -0.6% |
Brisbane | Inner City | -0.5% |
Melbourne | Mornington Peninsula | -0.5% |
Brisbane | Logan - Beaudesert | -0.5% |
Melbourne | South East | -0.4% |
Sydney | Inner South West | -0.4% |
Sydney | Baulkham Hills and Hawkesbury | -0.3% |
Perth | North West | -0.3% |
Brisbane | Moreton Bay - South | -0.3% |
The data also reveals that many of the largest price falls occurred in Melbourne’s inner city suburbs. Between the end of March and the end of May, Malvern East was the worst performing capital city suburb, with property values decreasing by 4.8%.
Other Melbourne suburbs where property prices have taken a beating include Glen Iris (-3.8%), Northcote (-3.5%), Port Melbourne (-3.2%), and Brunswick East (-3.1%).
Meanwhile, the Sydney suburbs that recorded the steepest drops in property values were Mosman (-2.5%), Lane Cove North (-2.4%) Manly (-2.3%), Leichhardt (-1.7%) and Wentworth Point (-1.4%).
Is now a good time to find a bargain?
While the dip in property values across Australia has been quite modest (-0.4% in May according to CoreLogic), it’s still a welcome turn for prospective homebuyers, who might have been discouraged by the unremitting rise in prices pre-COVID.
But is now a good time to buy property? According to Mozo’s property expert Steve Jovcevski, it all depends on how secure your job is and how insulated your finances are against any further economic shocks.
“If you’re still working, have a good income, and are able to get a home loan, then you are definitely well-placed to pick up a bargain. Especially since there are fewer investors in the market at the moment,” he said.
First homebuyers will also receive further support via the First Home Loan Deposit Scheme, which resumes in July 2020. This will allow homebuyers to purchase a home without the requisite 20% deposit and begin their home ownership journey sooner.
So if you’re looking to buy and the recent dip in prices has given you a surge of confidence, browse our guide to making your property move during lockdown for tips. And if you’d like to compare home loans, head over to our home loan comparison page.
Home loan comparisons on Mozo - last updated 2 December 2023
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Featured Product
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Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.74% p.a. variable5.65% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 5.74% p.a. variable
- comparison rate
- 5.65% p.a.
- interest rate
- 5.74% p.a. variable
- comparison rate
- 5.65% p.a.
- Upfront fees
- $0
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- 80.00%
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- $10,000
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Home Variable Rate
Owner Occupier, Principal & Interest, Refinance Only
interest rate
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Initial monthly repayment6.15% p.a. variable6.15% p.a.Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
CompareCompareHome Variable Rate
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
- interest rate
- 6.15% p.a. variable
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- 6.15% p.a.
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- 6.15% p.a. variable
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- 6.15% p.a.
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- $0
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- yes - up to $30,000
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- Variable
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Read our Mozo Review to learn more about the Up Home Variable Rate
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Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.39% p.a.Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
CompareCompareOffset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.39% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.39% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
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- $400.00
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- yes - free
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- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
- Repayment options
- Monthly
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Read our Mozo Review to learn more about the Macquarie Offset Home Loan
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Flex Home Loan
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment6.19% p.a. variable6.43% p.a.Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.
CompareCompareFlex Home Loan
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process.
- interest rate
- 6.19% p.a. variable
- comparison rate
- 6.43% p.a.
- interest rate
- 6.19% p.a. variable
- comparison rate
- 6.43% p.a.
- Upfront fees
- $250
- Ongoing fees
- $250.00 yearly
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- $300.00
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- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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Read our Mozo Review to learn more about the ubank Flex Home Loan
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- Packaged Home Loan - 2023
Variable Rate Home Loan Special Offer
Package, Owner Occupier, Principal & Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment6.14% p.a. variable6.51% p.a.Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.
CompareCompareVariable Rate Home Loan Special Offer
Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.51% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.51% p.a.
- Upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
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- Weekly, Fortnightly, Monthly
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- $0 package fee for the first year.
Read our Mozo Review to learn more about the Credit Union SA Variable Rate Home Loan Special Offer
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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